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Local socioeconomic impacts of large-scale mining projects in Ecuador: The case of Fruta del Norte

Author

Listed:
  • Carrillo-Maldonado, Paul
  • Arias, Karla
  • Zanoni, Wladimir
  • Cruz, Zoe

Abstract

This study examines the causal effects of the large-scale mining project Fruta del Norte on the socioeconomic outcomes of the Yantzaza canton (municipality), where the project is located. We apply the synthetic control methodology with a canton-level database to estimate the dynamic response of economic, education, and health outcomes of this municipality in the period 2007–2019. Our results show a continuous increase in sales and purchases since mineral exploitation began (2016). Moreover, we find a permanent increase in the number of formal job openings in Yantzaza. However, we put in evidence that the rates of elementary and high school dropout. The health variables present mixed results, where the rates of neonatal mortality fall, and teenage pregnancy rise.

Suggested Citation

  • Carrillo-Maldonado, Paul & Arias, Karla & Zanoni, Wladimir & Cruz, Zoe, 2024. "Local socioeconomic impacts of large-scale mining projects in Ecuador: The case of Fruta del Norte," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723013363
    DOI: 10.1016/j.resourpol.2023.104625
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    References listed on IDEAS

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    More about this item

    Keywords

    Large-scale mining; Causality; Synthetic control model; Ecuador;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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